The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.56 percent lower at 799.5 yuan (USD112.10) a metric ton as of 0310 GMT, and was poised to end the week 0.74 percent lower. The benchmark September iron ore on the Singapore Exchange fell 0.09 percent to USD105.5 a ton, and was set to end the week down 0.19 percent.
The European Commission plans to levy tariffs of 25percent-50percent on Chinese steel and related products in the coming weeks, per German business daily Handelsblatt.
The measure aims to limit steel imports and safeguard domestic producers as global overcapacity continues to pressure profit margins. Analysts estimate China’s steel exports will reach a record high this year, a trend exacerbated by weak demand in the domestic property sector.
Restricting steel imports from China is primarily aimed at supporting domestic steel producers and ensuring the survival of local industries, said a Singapore-based trader on condition of anonymity as they are not authorised to speak to media.
